Your employees are your best assets, and protecting them and their families provides long-term benefits to your company. Lyman & Sheets has expertise in evaluating and designing new programs to assure your company’s financial health and the well-being of your employees.

Key Person
Key-person insurance provides protection to a business against financial losses caused by the death or disablement of a vital member of the company, usually individuals possessing special managerial or technical skills or expertise. Businesses often use such proceeds to hire and train replacements, offset any losses in revenue from the event, as well as compensate spouses or dependents for the loss.

Buy/Sell
Developing a buy-sell agreement is a critical facet to any business operating with two or more partners. A well-constructed buy-sell agreement, at minimum, will cover three main events, which “trigger” the buy-sell: death, disability and retirement. When an event impacts a partner, that partner’s interest will be sold and purchased at a predetermined price or according to a predetermined formula. Once a price for the business has been determined, funding options for the agreement need to be decided. Planning for the death of a partner is one of the most straight-forward events to anticipate from a funding standpoint. Life insurance is often purchased to provide immediate cash flow to the partner’s estate and to the business. Planning for a long-term disability for the active partners of a business is critical to the business succession plan. In the event of a long-term disability, the business will ultimately want to replace the disabled partner, while the disabled partner will want to claim his or her capital investment. Disability buyout coverage is used to buy out the ownership interest of the disabled partner at a predetermined price. Proceeds are paid in a lump sum or over a period of time, generally two to five years.

Business Overhead Expense
A form of disability income coverage designed to pay necessary business overhead expenses, such as rent, utilities, insurance and payroll, should the insured business owner become disabled. The bottom-line purpose of the coverage is to keep the business running until either the owner returns from the disability or an appropriate price for the business can be earned .